THE company behind a long-standing rural retail family business, Blowes, will be offered for sale today following the move to put the company into voluntary administration.
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Store expansions, tough economic retail times and online shopping have contributed to the downturn for Brenstew Pty Ltd, the company responsible for four stores in the New England region.
Blowes Menswear, The Wardrobe and URXS at Tamworth, and The Wardrobe at Armidale, will be affected by the company changes.
Brenstew, owned by Brendon Blowes, has already had interest from potential buyers, with Mr Blowes hoping the sale would save the company set up by his family.
The company was started by Mr Blowes’ grandfather in Mudgee, with the first Tamworth store, Blowes Menswear, opening in 1992.
Mr Blowes put the company into voluntary administration with BRI Ferrier last week and is expect-ing a four to six week period of administration.
Businesses have already closed in Port Macquarie and Chatswood but more could follow.
Lease negotiations have begun to cut overheads at all businesses and stores will be liquidating stock to pay back creditors and put the company in a better trading position for the future.
Customer feedback has been positive, with loyal customers buying up big to help save the business.
“All our stores are in sale mode to clear stock so we’ve got big markdowns,” Mr Blowes said.
“We’ve had a lot of people rally around and buy stock in order to help us out, and they’re paying in cash so that the administrators can afford to keep the business running.”
The Tamworth Blowes store is one of the best trading outlets.
“Tamworth has always been a strong region for us and hopefully we’ll be able to continue into the future,” Mr Blowes said.
“We’ve been through some tough retail economic times but on the back of a couple of expansions in Tamworth and Port Macquarie that have increased our overheads, it’s made it impossible for us to move forward.”
The Blowes Menswear store was opened in 1992, followed by surf wear store URXS in 2003 and The Wardrobe in 2010.
Online retail has had a huge impact on the company, not from competitors, but from suppliers.
Among the main brands sold through the locals stores are iconic Australian brands RM Williams, Akubra, and Bisley, as well as a huge range of surf, fashion and sport brands.
“The biggest issue is not so much people preferring to buy online but the fact that we’re in direct competition with all of our suppliers, who can offer products for cheaper prices than what we buy them for,” Mr Blowes said.
Mr Blowes said his focus was to ensure staff received all their entitlements.
Some staff members have already been approached for positions with the company’s suppliers.
“Not only have we got good loyal staff, but experienced people in many different roles,” he said.
“I didn’t think if I tried to trade for another season that I’d be able to cover all entitlements.
“The restructure had to be attempted now in order to save as many jobs as possible and save the company.”
Mr Blowes is unsure of his next step after being in retail all his life.
“It’s the only thing I’ve really ever done, and apart from looking after my family, I haven’t given myself much thought beyond the six week period.”
